Rectifying Defects, Having the Defect Remedied and Agreement on Rectification

If the performance of a contract is defective, the other party may demand a new performance or rectification of that defect at the other party’s expense. The defect may be rectified e.g. by repairing a defective product or delivering missing documents. The rectification may also be performed by making a new performance e.g. by delivering a defect-free product instead of a defective product. The rectification may be performed on the presumption that the defect is repairable.

Typically, a party has a right to rectify the defect before a reduction in price or a rescission of an agreement. The party has the right to rectification provided that it the rectification will not cause any inconvenience to the other party or decrease value, for example.

Sometimes an injured party may have the performance rectified e.g. have the goods repaired and then demand reasonable compensation for the repair costs from the breaching party. This right is specifically provided for in the Sale of Goods Act in a situation where a seller has not taken action to rectify a defect. Other contractual laws include similar provisions.

The parties may conclude an agreement on rectifying the defect. When the parties have approved the agreement on rectification, it is no longer possible to refer to the defect that occurred. References to defects that occurred because of the rectification may, however, be referred to.